As the US faces billions of dollars in defense and other budget cuts, a county manufacturer that provides services to the US defense department and other companies plans to eliminate up to 100 positions by May, citing a decline in federal contracts.

Ultra Machine & Fabrication plans to lay off workers by May 11 at its Shelby location, according to a notice the company filed with the NC Department of Commerce.

“We regret the business circumstances that have made this decision necessary,” Ultra President and CEO Frank A. Stewart wrote in a letter to NCDOC. “Ultra faced a series of unforeseeable business circumstances relating to its federal contracting work, including reductions in federal purchasing and inability to secure additional federal contracting business.”

As the US pulls scores of troops from Afghanistan and the nation faces billions in federal budget cuts, US Defense Secretary Chuck Hagel and other Pentagon officials are reviewing plans for $46 billion in cuts from the defense budget, with the possibility of billions more in cuts in the next decade.

Stewart said in his letter to NCDOC that changes in the federal contracting business limited the amount of notice his company was able to give employees who will be displaced.

“As soon as we have information regarding the exact number of employees affected by this action, we will supplement this letter and the individual notices provided to our employees,” he said.

Stewart did not return a call to The Star for more information on the company or its layoff plans in time for this story.

Other manufacturing opportunities?

Stewart said in the NCDOC letter that his company will work with the Division of Employment Security to provide services to all workers who are displaced.

There’s a chance some of those workers can find jobs at other manufacturers in Cleveland County, said Ken Mooney, existing industry relations manager for the Cleveland County Economic Development Partnership.

“(Ultra is) a defense contractor, and that’s down right now,” Mooney said. “But automotive and energy are up right now, and we’re fortunate to have a more diversified manufacturing base in our county than we used to have.”

Ultra’s announcement is the first large-scale layoff news for the county since customer service call center Telerx announced its plans in October to cut more than 100 employees.

The Associated Press contributed to this report. Reach Matthew Tessnear at 704-669-3331, mtessnear@shelbystar.com or on Twitter @MatthewTessnear.

More about Ultra

WHAT DO THEY DO? – Ultra provides welding, laser-cutting, bending, robotic welding, high-definition plasma and coating services to the NC Department of Defense, security and government agencies.

Page 2 of 2 - WHERE ARE THEY LOCATED? – Ultra Machine & Fabrication operates its headquarters off Dixon Boulevard in Shelby and a coatings plant in Forest City, as well as an armoring plant in Kings Mountain, according to its websites.

WHAT DO THEY WORK WITH? – More than 600,000 square feet in its three facilities, with more than 220 pieces of welding equipment.

WHO WORKS THERE? – More than 200 certified welders, as well as ultrasonic technicians, mag particle technicians, dye penetrate technicians, certified welding inspectors and associate welding inspectors, according to a brochure on Ultra Armoring’s website.

Source: Ultra Machine & Fabrication, Ultra Armoring

Ultra timeline

A couple key points in Ultra's operations include:

1989 – Frank Stewart starts Ultra

November 2006 – Ultra Machine expands, with 63 new jobs, $6 million in economic investment

August 2011 – Ultra Armoring expands, with 150 new jobs, $2 million in economic investment

October 2011 – Ultra Machine expands, with 36 new jobs, $2 million in economic investment

What does Ultra’s operations and this layoff announcement mean for the county?

“Ultra is a very outstanding company in our community. We’re disappointed and sorry to hear they’re having to make some adjustments. It is just kind of a part of the world we live in today. I’m certain they’re doing all they can to keep the number of people they’re having to lay off as low as possible. Apparently it’s a result of federal contracts. This is some of how we’re feeling that locally. We’ve had some great successes lately and hate to see any steps backward.”

-- Stan Anthony, Shelby mayor

“Frank Stewart has been a good business leader and good steward and has done a great job building his business over the years. Over the years he’s had various military contracts that have benefitted our troops around the world and protected them. We’re proud of his leadership and his company’s investment in the community. He’s always diversifying his operations and know he will continue to be an important part of this community.”

-- Eddie Bailes, Cleveland County manager

“We’ll go in and work with displaced workers through the workforce development board and through the community college. There are some companies hiring right now. We’ll make them aware of that and connect them with companies that are hiring. Clearwater is still hiring, Schletter is ramping up and KSM Castings will be hiring later in the year.”